Jump to ContentJump to Main Navigation
Reforming the International Financial System for Development$
Users without a subscription are not able to see the full content.

Jomo Kwame Sundaram

Print publication date: 2011

Print ISBN-13: 9780231157643

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231157643.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 28 June 2022

The Basel 2 Agenda for 2009

The Basel 2 Agenda for 2009

Progress so far

(p.169) 7 The Basel 2 Agenda for 2009
Reforming the International Financial System for Development

Andrew Cornford

Columbia University Press

This chapter examines the ongoing revisions to Basel 2, the international standards for banks' regulatory capital developed by the Basel Committee on Banking Supervision (BCBS) to replace the 1988 Basel Capital Accord (Basel 1), and their implications for developing countries. The 2006 text of Basel 2 had been considered closed before the credit crisis which began in mid-2007. This crisis has indicated major shortcomings in the regulatory framework for financial institutions which are now the subject of an agenda of wide-ranging reform. Strengthening Basel 2 is an important item on this reform agenda. This chapter considers two of the major subjects of the revisions of Basel 2: the rules for securitization exposures and the Market Risk Framework. It argues that the Basel 2 rules may engender new problems in the future, citing the possibility that banks may be exposed to risks associated with cross-border asset-backed investments as well as investments linked to operations in their own financial markets.

Keywords:   banking international standards, Basel 2, Basel Committee on Banking Supervision, developing countries, credit crisis, financial institutions, securitization, Market Risk Framework, asset-backed investments, financial markets

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .